I think a lot of the way executives handle things like this is very similar to how kids handle problems. They continue to try to cover it up and downplay it in hopes that everything will be over soon and no one will talk about it. They say “this is an adjustment” or “it’s a transitory period” while continuing to do additional lay offs and saying “we just need to put this all behind us”, instead of ripping the bandaid off.
Just treat people like another adult on equal footing with you. It’s not that hard.